Silver declined on Friday, settling below $116 per ounce after touching a record high of $121.6 earlier in the week, as traders booked profits following an aggressive rally. On the Multi Commodity Exchange (MCX), silver fell nearly 6 per cent intraday to around ₹3,75,900 per kilogram after printing record highs near ₹4,20,048.
The pullback comes after silver surged more than 60 per cent in January alone, pushing momentum indicators into extreme overbought zones. “Silver’s recent decline is largely a technical and positioning-driven correction, rather than a breakdown in fundamentals,” said Justin Khoo, Senior Market Analyst at VT Markets. He noted that silver’s higher volatility and partial dependence on industrial demand make it more susceptible to sharp corrections compared to gold.
Despite the retreat, the near-term trend for silver remains positive as long as geopolitical tensions persist. Ponmudi R, CEO of Enrich Money, said COMEX silver is consolidating around $108-$111, holding above key moving averages, suggesting the pause is a healthy consolidation rather than trend exhaustion. He identified support at $106-$108, with a sustained breakout above $118-$121 potentially triggering a move toward $125-$140.
Rahul Kalantri, VP Commodities at Mehta Equities, highlighted that precious metals remain on track for their best monthly performance since the 1980s. Market volatility intensified after the US President criticized the Fed Chairman for not cutting rates. Kalantri pegged silver support at $109.10-$104.75 with resistance at $115.15-$117.80.
On MCX, the ₹3,55,000-₹3,60,000 zone remains a critical support base, with immediate resistance near ₹4,15,000-₹4,20,000. Analysts maintain that structural supply deficits and industrial demand from solar, electric vehicles, and AI sectors continue to underpin the bullish outlook for silver.
Published on January 30, 2026